• Gambit editor Clancy DuBos reflects on the nullification of the Crescent City Connection referendum and the collapse of the River Birch Inc. investigation. "In a sense, both stories were about tolls," he writes.
• Doug Handshoe says he's been pretty speechless since learning the federal government was dropping the River Birch case. Still, Handshoe manages at slabbed.org to opine at length on the topic, concluding that landfill company co-owner Fred Heebe "knew his opponents better than they knew themselves. At the end of the day it was the key to victory."

WASHINGTON - Mary Jo White, the former New York federal prosecutor nominated by President Barack Obama to head the Securities and Exchange Commission, may face questions Tuesday about her role in upholding key findings of the NFL's investigation of the so-called Bountygate involving the New Orleans Saints. Sen. David Vitter, R-La., is planning to ask White about her findings...

WASHINGTON - Mary Jo White, the former New York federal prosecutor nominated by President Barack Obama to head the Securities and Exchange Commission, may face questions Tuesday about her role in upholding key findings of the NFL's investigation of the so-called Bountygate involving the New Orleans Saints.

Sen. David Vitter, R-La., is planning to ask White about her findings in 2012 after she was hired by the NFL to evaluate its investigation of allegations that Saints players were offered bonuses for hard hits that forced an opposing player to leave a game. Tuesday's Senate Banking Committee hearing, though, is only two hours and it's not certain Vitter will get a turn at questioning White, who is expected to win Senate confirmation.

In May 2012, White was asked whether any players were actually paid for hits and she said they were, although she declined to provide specifics. She said most of the money was provided by players.

She also expressed support for the tough sanctions imposed by NFL Commissioner Roger Goodell, including a season long ban in 2012 for Saints Coach Sean Payton and full or partial season suspension for four current and former Saints players.

Mary Jo White faces possible questions about her support for NFL's Bountygate probe.  

In December, 2012, former NFL Commissioner Paul Tagliabue, who heard the players' appeals, vacated their suspensions, saying coaches were primarily responsible for Bountygate.

Seven months earlier, White, appointed by the league to evaluate its Bountygate problem, upheld most of the findings of wrongdoing by the Saints.

"The factual basis for the sanctions is strong in my opinion," White said during the May conference call with reporters."

White also said that Anthony Hargrove, a Saints defensive lineman, was shown saying, "Bobby, give me my money," after it was believed he had knocked Vikings quarterback Brett Favre out of the NFC Championship game in January 2010. But later, Goodell cast doubt on the allegation, saying "I am prepared to assume - as he apparently stated publicly - that he did not" make the "give me my money" statement.

Vitter said he's troubled by White's findings.

"If Mary Jo's work on the SEC is anything close to her botched work for the NFL, folks who want to protect their investments, like the victims of the Stanford Ponzi scheme, are in trouble," Vitter said. He was alluding to the many investors from Louisiana and elsewhere who lost millions of dollars from their investments with Allen Stanford, who is now serving a 110-year sentence for fraud. The SEC has acknowledged it took too long to investigate Stanford.

Despite Vitter's concerns, White is likely to win Senate confirmation, though some Democrats may question whether her ties to major Wall Street investment firms will stop her from the aggressive oversight of financial firms needed in light of the 2008 financial crisis.

Her supporters say that as a federal prosecutor in New York she has shown her tenacity and independence, including high-profile prosecutions for financial fraud, and of terrorists connected to the 1993 bombings of the World Trade Center. Earlier, as an assistant U.S. Attorney, White won some high profile convictions, including over Mob boss John Gotti.

"You don't want to mess with Mary Jo," President Obama said in nominating her to replace Mary Shapiro as head of the SEC.

Gov. Bobby Jindal on Monday announced appointments to the Louisiana Seafood Promotion and Marketing Board. In 1984, the state created the board to support the vast commercial fisheries industry. The board has 14 members; 13 are appointed by the governor from the Louisiana commercial seafood, crawfish and alligator industry, and the 14th member is appointed by secretary of the...

Gov. Bobby Jindal on Monday announced appointments to the Louisiana Seafood Promotion and Marketing Board. In 1984, the state created the board to support the vast commercial fisheries industry.

View full size A Louisiana Seafood Promotion and Marketing billboard along Interstate 10 in Slidell in April 2012. NOLA.com | Times-Picayune archive  

The board has 14 members; 13 are appointed by the governor from the Louisiana commercial seafood, crawfish and alligator industry, and the 14th member is appointed by secretary of the Department of Wildlife and Fisheries.

The board's operating budget historically has come from license sales to Louisiana commercial fishers and seafood wholesalers/retailers, as well as state and federal grants. But in November 2010, Jindal announced $30 million in funding from BP to the board to help market and promote local seafood in the wake of the BP Deepwater Horizon oil spill that affected national and global perceptions of the brand.

The names of the members appointed by the governor will be submitted to the Senate for confirmation.

The appointments to the Louisiana Seafood Marketing & Promotion Board are:

• Allen Gibson, of Dulac, is the vice president of Tidelands Seafood Co. and president of Driftwoods Farms. Gibson would serve as a representative of the American Shrimp Processors Association.

• Larry Avery, of Sulphur, is the co-owner of Gulf Island Shrimp Seafood. Avery would serve as a seafood processor.

• Peter Totorich, of Mandeville, is the senior director of Perishables for the Associated Grocers, Inc. Totorich would serve as a seafood buyer, nominated by the Louisiana Retailers Association.

• Keith Watts, of Ponchatoula, is the owner of K.W. Crabbing LLC. Watts would serve as representative of the Crab Task Force.

• John Folse, of Gonzales, is the owner of Chef John Folse and Co. Folse would serve as a marketing specialist.

• Tommy Stoddard, of Hackberry, is the owner of Louisiana Alligator Wholesaler, Inc. Stoddard would serve as a representative of the alligator industry.

• David Maginnis, of Houma, is the vice president of Jensen Tuna. Maginnis would serve as a representative of the commercial saltwater finfish industry.

• Peter Sclafani, of Baton Rouge, is the owner and executive chef of Ruffino's Restaurant. Sclafani would serve as a representative of the Louisiana Restaurant Association.

• Sal Sunseri, of New Orleans, is the vice president of P&J Oyster Co. Sunseri would serve as a representative of the Louisiana Oyster Dealers & Growers Association.

• Byron Despaux, of Barataria, is a commercial fisherman. Despaux would serve as a representative of the Louisiana Shrimp Association.

• Sherbin Collette, of Henderson, is the owner of Collette's Seafood and is the mayor of Henderson. Collette would serve as a representative of the wild catfish industry.

• Frank Randol, of Lafayette, is the president of Randol, Inc. Randol would serve as a representative of the crawfish industry.

Last week's nullification of the election extending tolls on the Crescent City Connection means drivers are streaming freely through the West Bank toll booths for now, but a host of questions remains about the future of the bridge. The New Orleans Regional Planning Commission must sort out several issues, including how to pay for lighting on the bridge and...

Last week's nullification of the election extending tolls on the Crescent City Connection means drivers are streaming freely through the West Bank toll booths for now, but a host of questions remains about the future of the bridge.

The New Orleans Regional Planning Commission must sort out several issues, including how to pay for lighting on the bridge and what should be done about the ferries that run near it. "At this point, we're looking to the Regional Planning Commission for their guidance," state Department of Transportation and Development Secretary Sherri LeBas said. The commission meets Tuesday.

The Crescent City Connection photographed from Algiers.  David Grunfeld, NOLA.com | The Times-Picayune  

Issues involving the CCC would have fallen to the commission regardless of the election's results, but a new wrinkle has emerged: what to do with the millions of dollars in tolls collected since the beginning of the year? That question likely will be determined by the courts.

Last week, District Judge William Morvant nullified the Nov. 6 election that extended the tolls for another 20 years by a 36-vote margin. The ruling focused on the fact that at least 1,000 registered voters were given provisional ballots that included only federal races, denying them the chance to weigh in on the toll issue.

Morvant set a new election for May 4.

In the meantime, the state highway department has fallen back to plans that were set to go into effect if the tolls had ended on Jan. 1. While key services, such as Motorist Assistance Patrols, will remain, less essential services, such as grass cutting, litter collection and sweeping the bridge, are being scaled back.

State Police took over patrols on the bridge at the beginning of the year and were set to receive about $2 million a year from toll revenue. Without the tolls, State Police will absorb those costs into its $240 million annual budget.  That shouldn't mean decreased patrol services either on the CCC or elsewhere in the state, State Police spokesman Capt. Doug Cain said.

Without tollbooths to staff, the state highway department laid off 31 workers last week. Those workers had been told they were probationary hires, and that their positions would be eliminated if the tolls were voted out, LeBas said.

The 25 workers involved in the collection of the tolls who remain employed are moving into back-office operations, such as accounting, needed to transition to a toll-less bridge, LeBas said. It's possible the department will lay off more workers before the second toll vote, she said.

Whichever way November's referendum went, the legislation that set it in motion called for the $31 million left in the CCC's accounts after its bonds were paid to be split into three parts. About $12.7 million went to the bridge's operations for the rest of the state's fiscal year, which ends on June 30. Another $11.2 million went to a construction escrow fund, with the intention that it be used for a variety of projects related to the bridge. The rest goes to the Regional Planning Commission as part of a transition fund.

State Rep. Pat Connick, a vocal opponent of the tolls, has decried the cutbacks in what are considered less essential bridge services, and questioned how that money is being used. "The money is there. The money is on the books,'' said Connick, R-Harvey. "The money needs to come back to us for grass cutting, for lights."

Of particular concern for Connick is the money in the construction account. Money in that account is used for all state spending and, while it is typically replenished by issuing bonds or adding more cash, the state's Legislative Fiscal Office has raised questions about whether current conditions could hamper that effort. The state has already scaled back on some bond issues in the face of a looming debt limit and a tight budget could preclude adding more money to the fund.

"I want to get details for what projects they intend to work on," Connick said. "We've got to understand the amount of money in the account and where they have it going.''

State highway department officials have said the money in the account will be used for the projects it was intended for.

The issues of lighting and ferries will be up to the New Orleans Regional Planning Commission, which can use about $4 million of the transition fund for bridge services. Executive Director Walter Brooks did not respond to several requests for comment last week about how that money would be used.

A key issue is lighting, both the decorative lights on the exterior of the spans and those that shine onto the roadway itself. Without lighting, the bridge's striping and raised pavement markers will continue to "provide safe travel," LeBas said.

Another issue is the fate of the ferries, which were turned over to the regional planning commission as part of the deal setting the referendum last session. That measure severed the ferry funding from the tolls.

Last year, the state sought to privatize the ferries, and dedicated about $4 million for improvements to the boats as an added bonus for potential buyers. But no one took the state up on the offer when it put the ferry service out to bid last year.

The state budgeted has enough money to keep the ferries running through the end of June. At that point, it will be up to the Regional Planning Commission to determine what happens next, LeBas said.

Senate President John Alario, R-Westwego, said that he doesn't envision a future in which the ferries "exist as we have them now. There won't be funding available to run them."

The state is also grappling with a problem unanticipated by legislators who drafted the toll referendum: what to do with the money collected during the first two months of this year, between the election and the judge's nullification of the tolls?

It amounts to about $5.2 million, and the money is being held by the state highway department until it becomes clear how it can be used. That will likely come from the courts or, should the May election reinstate the tolls, by the voters, LeBas said.

"We are going to be looking to the courts for direction on what to do," she said.

Staff Writer Andrea Shaw contributed to this report.

The federal budget deficit will drop to $845 billion this year

WASHINGTON (AP) -- Despite constant budget wrangling and finger-pointing by the nation's policy-makers, the government's short-term fiscal outlook isn't all that bad. It's actually getting better -- at least for now. Washington is borrowing about 25 cents for every dollar it spends, down from over 40 cents just a few years ago.

The federal budget deficit will drop to $845 billion this year after topping $1 trillion for four straight years, the nonpartisan Congressional Budget Office projects. Even if Congress does nothing further to cut spending or raise tax revenues, deficits will continue to shrink -- to $430 billion by fiscal 2015, the CBO said.

But, barring a major fix by the president and Congress, the government's finances will start to worsen again as the three major entitlement programs -- Social Security, Medicare and Medicaid -- become more and more expensive and unmanageable under the increasing weight of retiring baby boomers.

Recent budget improvements were helped along by increasing tax revenues as corporate America and many better-off Americans snapped back from the economic downturn and paid more in taxes. Stocks are setting new multi-year levels and corporate profits are soaring.

Yet the recent improvements on corporate and government ledgers haven't been shared by millions of working-class Americans. It's almost as if there were separate side-by-side economies.

Unemployment is still a high 7.7 percent nearly four years after the worst recession since the Great Depression officially ended, still far above the pre-recession levels of around 5 percent. Companies feel little pressure to raise wages since the pool of job seekers is large. Those with jobs are pressed to work harder, increasing productivity for corporations.

Companies also have benefited from the Federal Reserve's easy-money policies over the past four-plus years.

In keeping interest rates near zero and flooding financial markets with newly printed dollars, the Fed has helped drive up stock prices -- partly at the expense of many retired people and other savers who've seen interest earnings on their bank accounts dwindle.

"The private economy is doing very well and is steadily improving," said Mark Zandi, chief economist at Moody's Analytics. "Earnings are at record levels, profit margins have never been wider. That's particularly true for large companies whose stock is traded."

Looking ahead, Zandi said: "I'm hopeful things will simmer down in Washington, and that the deficit will stabilize by the end of the decade and into the next decade. After that, it will start rising again."

Even before the $85 billion in automatic cuts started kicking in on March 1, government spending was shrinking because of the expiration of federal stimulus and other recession-fighting programs of Presidents George W. Bush and Barack Obama.

Steven Rattner, Obama's former "car czar," has criticized Obama for exaggerating in depicting the $85 billion sequester cuts as a disaster imperiling the nation. Obama has since toned down his rhetoric and reached out to congressional Republicans. That pleased Rattner.

"I said he should stop just saying the sky is falling, which he's done," Rattner tweeted.

Legislation passed by Congress over the past two years will reduce deficits by roughly $2.3 trillion over the next decade -- two-thirds of it from spending cuts and one-third from more tax revenues.

The increased flow of cash to the government includes higher marginal income taxes on wealthy Americans from the New Year's "fiscal cliff" deal and the ending of the tax break for all workers on Social Security payroll taxes.

The $2.3 trillion less that Washington will be borrowing over the next decade takes the government much of the way toward the $4 trillion, 10-year goal set by Obama and the co-chairmen of his deficit commission, former Republican Sen. Alan Simpson and former Democratic White House staff chief Erskine Bowles.

"I don't know why the president doesn't talk more about that," said James Thurber, a political scientist at American University. Thurber said he thinks the immediate outlook is "that we're going to lurch, unfortunately" from one self-imposed crisis to another.

The budget deficit is the difference between what the government spends in a given year and the revenues it collects. The government makes up the difference by borrowing, just as a family may put excess spending on a credit card.

In the government's case, it borrows money by selling Treasury bonds, here and around the world.

The national debt -- $16.66 trillion today -- is the sum of everything the government owes, the accumulation of past deficits. It's the federal equivalent of a family's total outstanding debt.

Without higher taxes, changes in the big benefit programs like Medicare, Medicaid and Social Security, cuts in other government services or a combination of the three, deficits by the end of the decade will again be in the $800 billion range, according to the Congressional Budget Office.

"The fiscal problems worsen after the next 10 years under all scenarios," economists William Gale and Alan J. Auerbach wrote in a new analysis for the Brookings Institution, a think tank.

"We are letting the legacy programs of the past -- the mandatory spending programs -- crowd out our ability to do discretionary spending, which is all about the next generation," said economist Douglas Holtz-Eakin, a former CBO director and economic adviser to 2008 GOP presidential nominee John McCain. "So we are building a trap to really do a disservice to the next generation."

"Because the baby boom's now retiring, the debt is very high," Holtz-Eakin said. "We've given up our cushion and our lead time and we have to move more quickly."

A Forbes magazine contributor lambasted a decision by Louisiana's public utilities regulators to halt a statewide energy efficiency program, saying it's a step backward and leaves Louisiana as one of the few states without such a program. The self-described "clean energy wonk" wrote in the March 3 column the program's halt is a "big win for energy luddites."  Louisiana...

A Forbes magazine contributor lambasted a decision by Louisiana's public utilities regulators to halt a statewide energy efficiency program, saying it's a step backward and leaves Louisiana as one of the few states without such a program. The self-described "clean energy wonk" wrote in the March 3 column the program's halt is a "big win for energy luddites." 

Louisiana Public Service Commission Chairman Eric Skrmetta responded to the criticism Tuesday, saying in a telephone interview he thought the article, which he called "placed" and not "reported," was "an incorrect assessment of the situation." He added he would be writing a response op-ed to be released Wednesday.

Last month, Skrmetta and his fellow commissioners met in Baton Rouge and voted to halt a statewide energy efficiency program that supporters said would benefit both businesses and ratepayers by cutting down on power consumption and energy costs.

"The bottom-line benefits of basic energy efficiency investments are real and really compelling, especially at the macro level," wrote Pentland, who is also the senior market development director for ClearEdge Power, a hydrogen fuel cell manufacturer in Oregon.

Pentland noted a 1995 Department of Energy study that showed every dollar spent on energy efficiency added $0.49 more to a local area's economic activity than every dollar spent on an electric bill.

"This makes sense to me and 46 other U.S. states," Pentland wrote. At February's PSC meeting, New Orleans-area member Lambert Boissiere III also noted this figure, saying energy-efficiency programs are considered "normal and reasonable" in most other states.

Boissiere and fellow commissioner Foster Campbell of Shreveport, both Democrats, voted to continue with implementation of Phase One of the statewide energy efficiency program, known as Quick Start.

The program, first passed at a December PSC meeting under previous Chairman Foster Campbell, was partially modeled after New Orleans' Energy Smart in place since 2011.

The PSC gave electric utilities and natural gas providers about a year to develop similar programs that would have likely offered residential and business customers incentives for making improvements that lower their electricity use.

However, after moderate Republican commissioner Jimmy Field, of Baton Rouge, retired in December, the PSC's political make-up became more conservative.

Last month, the three Republican commissioners -- including new member and former Jindal administration official Scott Angelle -- voted to halt the program, saying the initiative was "shoved through" during the December meeting without proper preliminary research.

"Now we're going to go back, we're going to start over and we're going to get it done the right way," Skrmetta, R-Metairie, said in an interview after the Feb. 27 meeting.

"I don't want to see things not done, but I want to see things done in the right way which causes the least impact on the consumer and makes the most sense," Skrmetta added.

He added that he expected the initiative to be revisited within the next few months, at which time the commission would hire new researchers to undertake a more thorough review into the costs and benefits of such a program.

Calls to Skrmetta's Metairie office regarding the Forbes piece went unreturned on Tuesday. The next Louisiana PSC business and executive committee will take place in Baton Rouge on March 20.

WASHINGTON - It's one of those issues that often confronts Congress - whether to continue a policy that means jobs for some key constituencies, or a new policy that is more cost effective. That's a dilemma Congress will face again if President Barack Obama follows through with a reported plan to change the $1.5 billion Food for Peace Program...

WASHINGTON - It's one of those issues that often confronts Congress - whether to continue a policy that means jobs for some key constituencies, or a new policy that is more cost effective.

Sens. Mary Landrieu and David Vitter are fighting a proposal to end direct U.S. food shipments abroad and replace it with a cash program in which poor nations would get money to buy food from local producers. Scott Threlkeld, The Times-Picayune archive  

That's a dilemma Congress will face again if President Barack Obama follows through with a reported plan to change the $1.5 billion Food for Peace Program that sends U.S. food to 44 nations to help feed hungry people.

Under the proposal being considered by the president, perhaps as part of his 2014 budget proposal, the program would switch from direct food shipments purchased from U.S. farmers to a cash program in which foreign nations would get money to buy food from local farmers and producers.

The theory is that avoiding the shipping costs of sending food thousands of miles from the United States to recipient nations would save money. It would also provide the added benefit of boosting the food production capacity of foreign nations so that they can become more self sufficient.

"Creating a more flexible approach to food aid -- including buying food from farmers close to regions in crisis -- could feed up to 17 million more people without costing taxpayers an extra dime," said Ruth Messinger, president of the American Jewish World Service. "It would also support local agricultural economies, contributing to our long-term goal of a world free of hunger."

But a coalition of agricultural and shipping groups are vowing a fight, and they're getting support from some members of Congress. Sens. Mary Landrieu, D-La, and David Vitter, R-La., were among 21 senators who recently wrote a letter to the president expressing concern with the kind of changes being considered by the White House.

Louisiana Agriculture and Forestry Commissioner Mike Strain is also speaking out about changes he says would drain the income of Louisiana farmers.

"This is a program that benefits the recipients of the food aid, and it also helps our farmers," Strain said.

The letter signed by Landrieu and Vitter, along with 19 colleagues, describes the Food for Peace program as the nation's "flagship international food assistance program," one that has helped feed the world since 1954 during the Eisenhower administration.

It provides critical aid overseas, while providing "economic benefits at home" by providing jobs for the farm and transportation industries, the senators wrote.

Proponents of the current system say that by directly shipping food overseas the United States is in a better position of getting the food distributed to people who actually need it. But those seeking direct payments say that non-profit groups already working in the recipient nations are well equipped to coordinate assistance and buying local means food can be more distributed to those in need.

Twenty seven agricultural groups, including the U.S. Rice Producers Association, the U.S. Dairy Export Council and National Cotton Council, recently wrote the leaders of the Senate Agricultural Committee, urging them to resist major changes in the program.

"Bags of U.S.-grown food bearing the U.S. flag and stamped as 'From the American people' serve as ambassadors of our nation's goodwill, which can help to address the root causes of instability," the groups wrote.

But in tough economic times, the United States and the world's hunger people can't afford inefficiencies, even if it benefits some U.S. businesses, wrote a coalition of foreign assistance organizations that included CARE, Save the Children, Oxfam and the Mercy Corps.

"When 80 million people around the world go hungry every day, making every food aid dollar count is not only a responsible use of taxpayer money, it is a moral imperative," the groups said in a statement.

WASHINGTON -- The latest debate over federal spending and deficit reduction efforts officially began Tuesday when House Budget Committee Chairman Paul Ryan unveiled a  plan he says will balance the federal budget in 10 years. It's almost identical to his budget proposal last year - with one key difference. Relying on new tax revenue, much of it the result...

WASHINGTON -- The latest debate over federal spending and deficit reduction efforts officially began Tuesday when House Budget Committee Chairman Paul Ryan unveiled a  plan he says will balance the federal budget in 10 years.

Reps. Cedric Richmond, left, and Steve Scalise have sharply different views on Paul Ryan's latest budget proposal.  

It's almost identical to his budget proposal last year - with one key difference. Relying on new tax revenue, much of it the result of eliminating the Bush tax cuts for households with incomes over $450,000, as President Barack Obama helped enact over GOP objections, allows him to balance the budget in 10 years. That's something Ryan's proposal last year didn't even come close to. Ryan projects an extra $3.2 billion in revenue from the tax increases.

Still, the proposal remains controversial.

Americans 55 and under would be given a choice of traditional Medicare when they retire, or a voucher that they can use to purchase private insurance. Democrats said the vouchers won't come close to covering the cost of private insurance.

Ryan cuts some programs, and reduces the growth in other programs. For example, he'd freeze the maximum Pell Grant for college students at the current $5,645 level for 10 years. He would also eliminate the Medicaid expansion and subsidized health insurance -- the key components of the Affordable Care Act, or what Republicans call Obamacare.

Ryan has the right formula, according to Rep. Steve Sclaise, R-Jefferson.

"I commend Chairman Ryan for bringing forward a bold budget that balances in 10 years, jump starts our economy, repeals Obamacare, reduces spending, and preserves the American Dream for future generations," Scalise said.

"Chairman Ryan's budget is light-years ahead of the Senate Democrats' proposal which fails to ever balance, and President Obama's budget which hasn't even met the legal deadline to be filed for the fourth time in five years. Our children deserve better than the tax, borrow, regulate, and spend agenda of Washington liberals..."

Rep. Cedric Richmond, D-New Orleans, had a totally different reaction.

"I am absolutely disgusted by the 'new' Ryan budget because once again, it confirms that House Republicans have chosen to neglect the most vulnerable among us and endanger hard-won health care gains," Richmond said.

"This budget is full of stale and dangerous proposals that gut programs that invest in health care, education and infrastructure, programs that Louisiana's working families need. My Republican colleagues are focused solely on cutting spending when the best way to reduce the deficit and pay down the debt includes making smart investments. Infrastructure, education, dredging and innovation are all smart investments that would ultimately pay down the debt."

At a news conference, Ryan said he knows Democrats won't go along with everything he proposed, but expressed hope it would pave the way for negotiations that would result in a compromise acceptable to both sides.

Ryan, who ran as the vice presidential running mate to Republican Mitt Romney in 2012, acknowledged that the budget is similar to what the GOP campaigned on in their losing race against Democrat Barack Obama.

"So the question is the election didn't go our way - believe me, I know what that feels like - that means we surrender our principles? That means we stop believing in what we believe in?" Ryan said.

Ryan said he still believes Congress owes "the country solutions to the big problems that are plaguing our nation - a debt crisis on the horizon, a slow-growing economy, people trapped in poverty."

Rep. Chris Van Hollen, D-Md., the top Democrat on the Banking Committee, said the House GP budget is lopsided.

"They claim they are 'reigniting the American Dream' - but only for those who have already succeeded, while smothering it for everyone else. For the vast majority of working Americans, it only makes it harder to make ends meet," Van Hollen said.

Last week, Van Hollen and Ryan met with President Obama at the White House to discuss spending issues. The meeting was cordial, but the sharp differences between Democrats and Republicans on spending and taxes show that a big deficit reduction deal will be hard to achieve.

Senate Democrats are expected to unveil a competing plan on Wednesday that would generate $975 billion in new tax revenues by eliminating tax loopholes and add new spending for job training and infrastructure improvements.

Ryan, too, incorporates tax reforms in his budget, but would use all the savings to lower individual and corporate tax rates, none for deficit reduction.

Mark Schleifstein co-authored this report. Lockheed Martin Corp. announced Tuesday it will build two massive liquefied natural gas tanks at the Michoud Assembly Facility in eastern New Orleans in an attempt to capitalize on the state's rapidly expanding fracking industry while adding 400 new jobs to the struggling plant. The tanks, each 88 feet long and designed to carry...

Mark Schleifstein co-authored this report.

Lockheed Martin Corp. announced Tuesday it will build two massive liquefied natural gas tanks at the Michoud Assembly Facility in eastern New Orleans in an attempt to capitalize on the state's rapidly expanding fracking industry while adding 400 new jobs to the struggling plant.

The tanks, each 88 feet long and designed to carry 295,000 cubic meters of liquid gas, will serve as the fuel tanks for propulsion engines built by the Finnish company Wartsila, Lockheed President Gerry Fasano said. Those engines are built to power commercial transport ships, some of which are used in Louisiana.

Fasano added that the two companies are already discussing contracts to build another six tanks of various sizes at Michoud that could serve as storage tanks to transport gas overseas.

Lockheed, a major contractor for NASA and defense department projects, plans to invest $3 million in new equipment at the site starting in December and create 166 direct jobs and 236 support positions, Gov. Bobby Jindal said. The company will convert a building at Michoud once used to build tanks for space shuttles.

"I think this is a great example of taking technology for our space program and other purposes and transforming it to private sector use," Jindal said.

The governor made some concessions to encourage the deal. For its efforts, the company will get an industrial tax exemption, the state's economic development arm will help screen and train future employees, and the state will rebate $7.6 million over the next 10 years through the Competitive Projects Payroll Incentive Program, Jindal said.

Turning Michoud back into a manufacturing hub has been a slow, tortuous process as boosters have lured just a handful of private contractors to the 43-acre site after the federal government shuttered its space shuttle program in 2010.

At its height in the early 1980s, Michoud was employing more than 5,500 workers. That number quickly dwindled to fewer than 600 after the last of 136 shuttle fuel tanks rolled off Michoud's lot three years ago.

Fasano and Jindal, at the very least, see the burgeoning natural gas industry as a helpful stopgap.

Louisiana has become one of the largest producers of natural gas thanks to a relatively new technique that allows companies to extract the fuel from shale deposits as far as three miles below the surface. Known as hydraulic fracturing, or "fracking," companies use pressurized liquid to shatter underground rock, exposing oil and natural gas deposits that otherwise couldn't be accessed by conventional wells.

Fracking has allowed almost 2,200 wells to tap into the Haynesville Shale formation in northwestern Louisiana. Another 13 wells are pulling oil and gas from the Tuscaloosa Marine Shale formation in central Louisiana and the Florida parishes. That level of production has enticed shipbuilders and other transport manufacturers to look to natural gas as an alternative to diesel.

But to turn the gas from its airy form into a compact, usable liquid, it must be cooled to -260 below zero Fahrenheit. Royal Dutch Shell PLC announced March 5 that it would be building a chilling facility in Geismar, south of Baton Rouge. When complete, that plant will be able to produce 250,000 tons of liquefied natural gas each year.

Shell has business arrangements with Martin Energy Services and Martin Midstream Partners to serve liquefied natural gas customers in Texas and Louisiana. It also has an agreement with shipyard giant Edison Chouest Offshore to transport the fuel from Geismar to Port Fourchon.

Shell has chartered three vessels from Harvey Gulf International Marine to support its operations in the Gulf of Mexico. Those vessels use dual-fuel propulsion engines built by Wartsila.

The Wartsila-Lockheed arrangement won't be the only manufacturing activity at Michoud. A British company, Blade Dynamics Ltd., announced in 2010 that it would build wind turbine blades at the site, adding about 600 jobs by 2015. The first one rolled off the lot in December 2011.

The design and engineering firm Sierra Nevada Corp. also partnered with Lockheed earlier this year to build the frames for the "Dream Chaser," a newly developed commercial space shuttle expected to cart crews and cargo to the International Space Station.

The agreement on the new gas tanks signify diversity for Lockheed, a government contractor whose business can be susceptible to budget fights in Congress.

"There's no doubt these are challenging times," Fasano said. "Our leaders in Congress really have a tough job that not many of us would like, to try and balance that budget. It's the reality we live in, and so, as a business, we look for resiliency. This is a perfect opportunity for us to gain resiliency."

A leader of the Six Flags project defers to Riverwalk project

Plans for an upscale outlet mall at the site of the former Six Flags amusement park in eastern New Orleans appeared to evaporate Tuesday when one of the would-be developers told a city board that the New Orleans market can support only one such venture, and the planned outlet mall at the Riverwalk is so much further along that his project can't compete.

One member of the Industrial Development Board called the announcement "a bombshell." The board holds the title to the Six Flags property on behalf of the city.

At an outlet mall, manufacturers sell products directly to the public through their own stores, or major retailers operate stores selling returned goods and discontinued products, often at sharply reduced prices.

The Landrieu administration selected Provident Realty Advisors and DAG Development a year ago to plan the redevelopment of the former Six Flags site. The joint venture proposed building a 400,000-square-foot upscale outlet mall and entertainment boardwalk on the 150-acre site, which was abandoned after Hurricane Katrina. Future phases of the plan envisioned a big-box retailer, amphitheater, sports field, water park and hotel.

The developers were expected to spend 12 to 24 months determining whether they had a financially viable project that could begin construction. However, four months later, in July, another company announced plans for a $70 million renovation of the Riverwalk Marketplace that would add 50,000 square feet to the shopping complex and turn it into an outlet mall.

The Riverwalk plans were announced by Dallas-based Howard Hughes Corp., which took over ownership of the riverfront mall in the fall of 2011 after the previous owners, General Growth Properties, filed for Chapter 11 bankruptcy. The announcement said the Riverwalk would be closed during renovations but would reopen as the Outlet Collection at Riverwalk before the 2013 holiday shopping season.

David Garcia, the principal of DAG Development, told the Industrial Development Board on Tuesday that market realities dictate there can be only one upscale outlet mall in the metropolitan area and the Riverwalk project is far ahead in signing up major tenants. He said major retailers have made clear they would not be interested in having two stores in the area, even if the Six Flags project offered them free space.

Garcia said he and Provident had contacted Howard Hughes Corp. to discuss possible ways of collaborating on a mall at the Six Flags site but had not received an answer. However, Mark Bulmash, senior vice president for development at Hughes, wasted no time in rejecting the idea of possible cooperation with the rival venture.

In an interview Tuesday afternoon, Bulmash said Hughes is fully committed to the Riverwalk project and is not interested in talking with Provident or DAG about the Six Flags site. "The project is moving full steam ahead," he said. "We now have tenant commitments from top national and local retailers for nearly 80 percent of the center. We will be sharing specifics about this exciting news in the near future, including a firm timeline and some of our new retailers."

Alan Philipson, a member of the Industrial Development Board, said he thinks the Six Flags site is better suited for an outlet mall than the Riverwalk because it is much larger and has far more parking for local shoppers and those driving in from surrounding areas. Such shoppers often spend an entire day at such a mall, he said. Philipson said he doubts that an outlet mall in the CBD will prove successful, although he said the Riverwalk could be a good site for some high-end stores. 

Bulmash said, however, that he is confident the Riverwalk mall will prove successful. In fact, he said, the Riverwalk "is an ideal location ... within walking distance of virtually every downtown and French Quarter hotel and attraction" and adjacent to the Ernest N. Morial Convention Center and the Port of New Orleans' Julia and Erato Street cruise ship terminals.

"According to the New Orleans Convention and Visitors Bureau, some 54 percent of tourists frequent the Riverwalk," Bulmash said, "and today we learned that in 2012 more than 9 million visitors came to New Orleans and spent a record-setting $6 billion." He said the site has enough parking to accommodate local customers.

Garcia had said earlier that if it became clear that Hughes would not collaborate on a project at the Six Flags site, he and Provident would consider other possibilities for the site such as an entirely entertainment-focused development.

Aimee Quirk, Mayor Mitch Landrieu's top adviser on economic development, told the IDB that the administration remains "committed to getting a positive project at the Six Flags site" and will work on a new development strategy for it. She said the city "can't pick sides" in a contest between two outlet mall projects.

Quirk had told the IDB last summer that the Hughes Corp.'s plans would not affect the Six Flags project because there's plenty of opportunity in New Orleans for retailers and the two projects would draw different types of customers. "The city is very under-retailed, " she said at the time.

• The Jefferson Parish Council meets Wednesday (March 13) at 10 a.m. with an agenda running to 108 items. Among them are measures to refund stoplight camera fine revenue, to cancel the May 4 referendum on Crescent City Connection tolls and alter parish contracting procedures, although the contracting item is likely to be postponed.
• CityBusiness takes a look at the latest contract in the Harahan pump-to-the-river drainage project. The Army Corps of Engineers awarded the $24.3 million job to B&K Construction.

Jefferson Parish residents whose homes and businesses were damaged by a Feb. 25 hailstorm won't have to get a parish permit or pay code enforcement fines for unpermitted repairs completed through mid-April, the Parish Council said Wednesday. In an emergency decision, the council waived permitting requirements and fines until April 16 for all demolition, rebuilding, roofing work and other...

Jefferson Parish residents whose homes and businesses were damaged by a Feb. 25 hailstorm won't have to get a parish permit or pay code enforcement fines for unpermitted repairs completed through mid-April, the Parish Council said Wednesday. In an emergency decision, the council waived permitting requirements and fines until April 16 for all demolition, rebuilding, roofing work and other repairs prompted by the hailstorm.

The measure is retroactive to the storm's date, meaning property owners who already started repairs without a parish permit will be included in the new amnesty. The amnesty includes only properties in unincorporated areas of the parish, where most parish residents live.

It is unclear how many property owners will benefit from Wednesday's decision. The storm pummeled wide areas of the parish, particularly in Harvey and Marrero, with hail as large as golf balls. Hail dented roofs in thousands of homes and broke windows in buildings and vehicles. The storm also affected parts of Orleans and Plaquemines parishes.

Councilman Mark Spears, who sponsored the measure to waive permitting requirements in Jefferson Parish, said thousands of residents need to repair their property.

"This would make it easier for those folks to complete their repairs without having to get a permit or worrying about fines," Spears said.

Councilman Chris Roberts also instructed the administration to devise a way to refund permitting fees to property owners who already have obtained a permit for storm-related work. Roberts noted the parish has refunded fees when it has waived permitting requirements after hurricanes.

The measure, however, didn't waive permitting requirements for regular construction and for repairs unrelated to the Feb. 25 hailstorm. Officials warned that property owners doing work that's not related to the storm still will have to get a permit and could face fines if they complete unpermitted repairs.

The Jefferson Parish Council canceled a disaster cleanup contract Wednesday, illustrating the challenge of balancing qualifications, price and politics in choosing vendors. The council decided to seek new proposals for monitoring debris removal, a job likely worth more than $1 million if a hurricane hits. Shaw Coastal Inc. of Metairie won the contract last fall. It was one of...

The Jefferson Parish Council canceled a disaster cleanup contract Wednesday, illustrating the challenge of balancing qualifications, price and politics in choosing vendors. The council decided to seek new proposals for monitoring debris removal, a job likely worth more than $1 million if a hurricane hits.

Shaw Coastal Inc. of Metairie won the contract last fall. It was one of nine companies that competed for the job. At the time, a technical evaluation committee ranked Shaw's proposal No. 1 with 476 points out of 500.

But Shaw had the second-highest price at $1.5 million. When price was factored into the evaluation, its overall ranking fell to No. 5, with 594 points out of 667. Rising to No. 1 was Science Applications International Corp. of Maitland, Fla., with 632 points.

Shaw and its affiliated companies are campaign contributors, having given a total of $15,250 in the past two years to council members Elton Lagasse, Chris Roberts, Ricky Templet and Ben Zahn and Parish President John Young, according to public records. Science Applications contributed no money, according to the records.

Amid some debate over qualifications versus price, the council gave the monitoring job to Shaw on Sept. 19. Although the federal government generally pays much of the costs of disaster cleanup and monitoring, the local government gets to choose the contractors.

Councilman Paul Johnston said this week that he would not have voted for Shaw had he not received assurances that the parish attorney's office would try to negotiate a lower price on the contract. "We would lose FEMA funds if we don't go with the best price," Johnston said.

The negotiations stalled, however, when the Governor's Office of Homeland Security and Emergency Preparedness told parish officials that price may not be negotiated, parish attorney Deborah Foshee said. "We were unable to get them to be the lowest price," she told the council.

But council members expressed frustration with Science Applications, after Young gave the company an emergency contract to monitor Hurricane Isaac cleanup last year. At the time, the council had failed to reach an agreement on awarding the contract.

Perhaps because the company was from out of state, its personnel seemed lost in Jefferson Parish, council members said. For example, the Louisiana Department of Transportation and Development had instructed Jefferson not to collect debris on state highways, Roberts said, but "that company couldn't tell you what was and was not a state highway." 

"It was the responsible position," Roberts said of choosing Science Applications, "but it ended up costing our residents."

Foshee said the administration will include familiarity with the area in the scoring criteria for the new contract. And after Lagasse and Templet noted that the 2013 hurricane season starts in less than three months, she said the administration will move as quickly as possible to advertise the job and evaluate the proposals it receives.

Price will count for 20 percent of the overall score, Foshee said.

Parish Council members have tinkered for years with procedures for awarding professional service contracts, which by law need not go to the cheapest vendor. Price is not considered at all in most request-for-proposal jobs but was included in evaluation of the disaster-monitoring proposals because FEMA requires it for local governments seeking federal reimbursement of their spending.

The Young administration, the Bureau of Governmental Research and Citizens for Good Government have pressed recently to make price and qualifications the most important factors in the selection, and to limit the discretion of the politicians awarding contracts.

Jefferson Parish Council members Wednesday postponed a vote on contracting changes, as advocates expressed disappointment that officials were once more delaying proposals that have been on the works for months Watch video

Jefferson Parish Council members Wednesday postponed a vote on contracting changes, as advocates expressed disappointment that officials were once again delaying proposals that have been in the works for months. The deferral was expected, as officials had said they would give time for representatives of minority businesses to lobby the council.

Still, advocates expressed dismay.  

"We're anxious for the council to at least take some action in reforming the (contracting) process," representatives of Citizens for Good Government told council members.

Councilman Mark Spears asked for the delay so that the New Orleans Regional Black Chamber of Commerce can meet with council members to discuss objections to the proposal. Patrice Williams-Smith, the chamber's president and CEO, has said a provision reducing the council's discretion in granting contracts would limit the ability of minority-owned companies to win public contracts.

The Bureau of Governmental Research, which is advocating for reforms, said the parish could include minority participation in the criteria to evaluate contractors, thus addressing the chamber's concern while reducing political discretion in the selection process.

Margie Seemann, president of Citizens for Good Government, asked the council Wednesday to also schedule meetings with her organization and with BGR, so that proponents of the changes can also lobby officials. Spears said those meetings would be arranged if the groups request them.

 Council members and Parish President John Young began proposing changes last fall to how the parish awards so-called Request for Proposal contracts. The RFP process, used to hire specialized, non-professional services, was used to in 20 percent of the parish's no-bid service contracts in 2011, according to BGR. Those 2011 deals included contracts for recycling, transportation and security services.

Councilman Chris Roberts authored an ordinance earlier this year that would restrict the council's choices in RFP contracts to firms ranked in the top three in parish evaluations, or the top five if eight or more firms made offers. The proposed ordinance would also require the council to consider price as part of the criteria used to evaluate offers, and would mandate that contractors file affidavits disclosing campaign contributions made to parish officials, among other items.

Seemann said Wednesday the reforms fall short of what her group and BGR would like to see, but she said the changes are a step in the right direction.

"We're disappointed they postponed it," she said.

WASHINGTON -- In a room full of adults, Brittany Wallace, 17, stood out for her emotional appeal Wednesday for legislation that would prohibit the sale or transport of horses across states or to other nations for slaughter and processing for human consumption. Brittany, an equestrian rider, attended a news conference in which Sen. Mary Landrieu, D-La., announced the new...

WASHINGTON -- In a room full of adults, Brittany Wallace, 17, stood out for her emotional appeal Wednesday for legislation that would prohibit the sale or transport of horses across states or to other nations for slaughter and processing for human consumption.

Rep. Patrick Meehan, R-Pa. (left) with Sen. Mary Landrieu, D-La., and Rep. Jan Schakowsky, D-Ill., as they introduce legislation to ban the slaughter of horses for food consumption.
Photo by Matthew Lehner  

Brittany, an equestrian rider, attended a news conference in which Sen. Mary Landrieu, D-La., announced the new legislation that comes following reports that the Department of Agriculture will approve a horse slaughtering plant in New Mexico. At the same time, European officials are investigating how horse meat was mixed into frozen food that was supposed to contain only beef or pork.

Brittany, a Massachusetts resident, told the gathering of reporters and animal rights advocates about her long-time horse Scribbles. After 4 ½ years under her care, Brittany's family sold the horse to another family who promised to care for it and allow the teen-ager regular visits.

But one day, while scanning her Facebook page, she noticed the picture of a bloodied brown bay mare that had just been rescued from the director of the Omega Horse Rescue project in Pennsylvania. It was in pen of horses that had been sold for slaughter.

A scar under her tail confirmed that the horse was Scribbles, and soon Brittany was reunited with the animal.

"When Scribbles was little, I taught her lots of tricks, including how to bow," Brittany told reporters and others at a Capitol news conference. "When I went to see her (after the rescue from the slaughter pen), she bowed right there and kept bowing over and over and she also kept licking me. She knew she was lucky not to die."

Landrieu, a regular rider like Brittany, said horses aren't intended for human consumption.And moreover, horse meat can be dangerous, given the drugs so many horses are given, particularly racehorses, to keep them from going lame and to give them energy.

"The issue of tainted and toxic food has the American people's attention," Landrieu said. Eighty percent of Americans oppose the slaughter of horses for food, according to polls cited by Landrieu.

During Wednesday's news conference, Nick Dodman, co-founder of Veterinarians for Equine Welfare, said he knows of race horses who raced one day and one day later were determined no longer fit for racing and sold for slaughter.

That's a real health issue, Dodman said, because so many race horses are given powerful drugs that would pose significant health issues for humans who consumed their meat.

The bill banning export of horses is sponsored by Landrieu, Sen. Lindsey Graham, R-S.C., along with Reps. Pat Meehan, R-Pa., and Jan Schakowsky, D-Ill.

The Valley Meat Company, which sued the Department of Agriculture to force the agency to set up an inspection system so it can begin slaughtering horses, in New Mexico, said that there's no reason for Congress to intervene.

The company's suit said it has set up a regime to test for drugs ingested into the horses at its facility that should allay any health concerns. All it needs, the company's lawyers said, is a USDA inspection process.

Landrieu said USDA Secretary Tom Vilsak doesn't have enough money to meet the agency's existing obligations, and shouldn't be responding to pressure from the horse slaughter industry to set up a new inspection regime.

"If Secretary Vilsak spends the little money that he has starting new programs when we can't support adequately the programs we have, I think he's going to hear form some of the (Congressional) appropriators," said Landrieu, a member of the Senate Appropriations Committee.

The USDA put out a statement Wednesday saying it had no choice but to move forward with inspections but hopes Congress will re-impose a previous ban on slaughtering horses.

"The Fiscal Year 2012 Agriculture Appropriations Act, Congress lifted the ban established in 2006 that prevented horse slaughter in the United States. While there are currently no establishments authorized to slaughter horses, several companies have requested that FSIS reestablish inspection. These companies must still complete necessary technical requirements and FSIS must still complete its inspector training, but at that point, the Department will legally have no choice but to go forward with inspections, which is why we urge Congress to reinstate the ban," the department statement said.

Chris Heyde, deputy director of the Animal Welfare Institute, said Landrieu and the other sponsors of her legislation are right to fight for a ban.

"The only individuals advocating for horse slaughter are those who profit from the suffering of these amazing animals," he said.

Stoplight scofflaws who were fined by Jefferson Parish's roadside camera system likely will get their money back. But perhaps not all of it, and certainly not soon. The Parish Council voted Wednesday to refund whatever is left in the $19.7 million pool of escrowed fine revenue after it resolves a pair of lawsuits. One was filed by motorists against...

Stoplight scofflaws who were fined by Jefferson Parish's roadside camera system likely will get their money back. But perhaps not all of it, and certainly not soon.

The Parish Council voted Wednesday to refund whatever is left in the $19.7 million pool of escrowed fine revenue after it resolves a pair of lawsuits. One was filed by motorists against the parish and camera contractor Redflex Traffic Systems Inc. of Phoenix, Ariz., the other by Redflex against the parish for more than $7.3 million of the pot.

Council Chairman Chris Roberts, who sponsored the refund resolution, said he hopes the measure will "put an end to a long chapter of questionable dealings" with Redflex. But he cautioned: "I don't want to give anybody the false impression that checks are coming in the mail tomorrow."

In urging refunds, Roberts cited lingering concerns about the fairness of the camera program, Redflex's arrangement to pay its Jefferson lobbyists a share of fine revenue and the company's recent admission that its Chicago camera contract was likely won as a result of a $2 million bribery scheme.

He also disclosed that about 100,000 motorists never responded to Jefferson's camera tickets, suffering no financial penalty even as 180,000 others paid the $110 fine for running stoplights. "There apparently was no consequence for not responding," Roberts said.

The Redflex contract is not explicit on which party was responsible for finding motorists who ignored tickets. In one place, it says the parish and Sheriff's Office "shall diligently prosecute citations and the collection of fines." In another, it says Redflex's obligations included "citation processing and citation re-issuance."

A Redflex representative had no immediate comment Wednesday.

The refund resolution calls for reimbursing ticketed motorists on a pro rata basis once the suits are resolved, but no one knows how much Jefferson must pay to settle the cases. In the motorists' class action suit, the plaintiffs have lost all the major rulings in court, but the issue remains in litigation. In the Redflex suit against the parish, the company claims its contractual share of the fine revenue plus late fees, interest and attorney fees, for a total of more than $7.3 million and counting.

If Redflex won what it is seeking, the pot would be reduced to $12.4 million. Divided among 180,000 motorists, that works out to about $69 each.

The Parish Council's opinion of stoplight cameras has swung 180 degrees since 2006. Led by then-Councilman John Young, the council voted 6-0 that year to give Redflex the contract to erect cameras at 11 intersections. The revenue was to be split among Redflex and several parish government agencies.

Proponents said the system would improve safety while freeing traffic officers from the Sheriff's Office to fight crime. Opponents said the safety hypothesis was unproven and that the cameras were nothing but a vehicle to raise more money for politicians to waste.

No sooner had the cameras gone into operation in 2007 than drivers added new complaints: The caution signal had been shortened, the line marking the intersection had been moved back and there was no person to whom th   ey could explain their actions.

But it wasn't until 2010 that the council voted 7-0 to unplug the cameras. That came right after Parish President Aaron Broussard resigned in an unrelated corruption scandal, and after the council learned that Redflex had arranged to give about 3.2 percent of its fine revenue to its Jefferson lobbyist, former New Orleans City Councilman Bryan Wagner. Wagner's business partner was Julie Murphy, who is married to Judge Robert Murphy.

After the Chicago bribery scandal broke March 1, Roberts saw an opening to send back whatever money remains in the fine pool once the suits are settled.

Redflex holds separate contracts for traffic enforcement cameras in Gretna and Westwego. But there has no been no public move to discontinue them there, much less refund fine revenue.

WASHINGTON -- President Barack Obama appealed for cooperation to end the legislative gridlock as he met with House Republicans Wednesday. The closed meeting at the Capitol highlighted the differences between Republicans and the Democratic President on health care, energy production, and balancing the budget, participants said. "It was a very candid discussion," said Rep. Steve Scalise, R-Jefferson, one of...

WASHINGTON -- President Barack Obama appealed for cooperation to end the legislative gridlock as he met with House Republicans Wednesday. The closed meeting at the Capitol highlighted the differences between Republicans and the Democratic President on health care, energy production, and balancing the budget, participants said.

"It was a very candid discussion," said Rep. Steve Scalise, R-Jefferson, one of six GOP members chosen by leadership to ask the president questions during the free-wheeling discussion.

Despite the differences of opinion, Scalise said, both sides were cordial to each other. The meeting generated hope the two sides can work together, at least on some issues, said Scalise, leader of the House conservative caucus.

Scalise said during his questioning of the president he pointed to the importance of increasing energy production to increase jobs. He asked the president to approve the Keystone XL Pipeline, now that the State Department has issued a report not finding significant environmental obstacles.

Rep. Steve Scalise was one of six House Republicans who got to question President Barack Obama on Wednesday. Jonathan Tilove, The Times-Picayune

On this, Obama made some news. The president told Scalise he's close to making a decision, though he disputed as inflated the 25,000 jobs supporters say will be created by the project.

On energy, the president responded to Scalise by saying that production has increased under his administration. Scalise said he responded by saying that the credit rests with increased production on private, not federal land.

On the deficit, Scalise said he appealed for the president to work with Republicans to identify waste in the federal budget and eliminate it. Scalise said he told the president of a congressional report that found $26 billion in fraudulent food stamp payments.

Scalise also took a shot at the Affordable Care Act, beginning his question by saying he knows it's an issue the president has a significantly different position than Republicans do. Still, Scalise said he told the president that when he meets with small business owners back in Louisiana he's told that the single biggest impediment for adding new jobs is concern about the mandatory health coverage required for businesses with 50 or more workers.

Other Republicans agreed the meeting provided an opportunity for both the president and Republicans to clear the air on critical issues.

"I think he did himself some good by coming here," said Rep. Paul Ryan, R-Wisc., the chair of the House Budget Committee who, along with the panel's top Democrat, had lunch with the president last week.

House Speaker John Boehner, R-Ohio, said the discussion offered a "very frank and candid discussion of ideas" and was productive.

"We know, however, that there are some very real differences between our two parties," Boehner said. "Republicans want to balance the budget. The president doesn't."

The biggest dispute, however, is the president's call for a balanced deficit plan that combines spending cuts with new revenues by eliminating tax breaks for wealthy corporations and individuals. Scalise has said, as far as Republicans are concerned, there won't be anymore tax increases besides the $600 billion over 10 years generated early this year by legislation ending Bush tax cuts for households with incomes over $450,000.

The White House press office later issued a statement on the meeting attributed to an unnamed administration official.

"The President visited with the House Republican Conference on Capitol Hill this afternoon to discuss important proposals before Congress such as initiatives to create jobs, reform our immigration system, reduce gun violence, strengthen our cyber-security and pursue a balanced approach to deficit reduction. The President appreciated having the opportunity to meet with the Conference."

"He had a good, substantive exchange with members of the Conference and enjoyed the conversation. The President handled a variety of questions on a range of topics from the members and reinforced his strong desire, especially now that the election is over, to find bipartisan common ground on a range of legislative priorities. He noted that they did not need to resolve all policy differences to make progress on challenges facing the country where there is agreement."

Julie Stokes took the oath of office in a private ceremony Wednesday (March 13) to become the newest member of the state House of Representatives. The 79th District representative for west Metairie and north Kenner said she is arranging a public ceremony later this month. The Kenner Republican also has received her committee assignments in advance of the 2013...

Julie Stokes took the oath of office in a private ceremony Wednesday (March 13) to become the newest member of the state House of Representatives. The 79th District representative for west Metairie and north Kenner said she is arranging a public ceremony later this month.

The Kenner Republican also has received her committee assignments in advance of the 2013 legislative session, which begins April 8. She's on three:

• Ways and Means
• Health and Welfare
• Labor and Industrial Relations.

The first two panels likely will get a workout this year with Gov. Bobby Jindal proposing to swap income taxes for sales taxes and the continued transformation of Louisiana's health-care delivery system.

"Should be an interesting session," Stokes said.

 Stokes is an accountant and co-owner with her husband of a company that facilitates rehabilitation for persons who suffer on-the-job injuries. She defeated three opponents in the March 2 special election to succeed Tony Ligi, who resigned from the House to work for the Jefferson Business Council.

WASHINGTON -- The Jindal administration, which has rejected an expansion of Medicaid to increase health coverage for the uninsured, is expressing some interest in a tentative deal between Arkansas and the Obama administration that would provide health coverage through private insurance markets. Under the tentative compromise, coverage for an estimated 215,000 Arkansas residents would be provided from private insurance...

WASHINGTON -- The Jindal administration, which has rejected an expansion of Medicaid to increase health coverage for the uninsured, is expressing some interest in a tentative deal between Arkansas and the Obama administration that would provide health coverage through private insurance markets.

Gov. Bobby Jindal, left, and Louisiana Health and Hospitals Secretary Bruce Greenstein aren't shutting the door on an Arkansas-type compromise on the Affordable Care Act. The Associated Press  

Under the tentative compromise, coverage for an estimated 215,000 Arkansas residents would be provided from private insurance firms made available under health exchanges intended to help people who make too much to qualify for Medicaid get coverage.

Jindal's Department of Health and Hospitals Secretary Bruce Greenstein issued the following statement on the Arkansas negotiations:

"We look forward to seeing the final terms of the agreement Arkansas reaches with federal officials. We've consistently said that states should have more flexibility in how they address the coverage needs for their population, including the ability to utilize the private health insurance market, including the Exchange."

"This is one of the common sense elements of Medicaid modernization we've talked about, but HHS should go much further to offer states real flexibility in a more comprehensive and transparent fashion."

Rep. Bill Cassidy, R-Baton Rouge, a physician who has been critical of the president's Affordable Care Act, said using private insurance has advantages over simply increasing eligibility through Medicaid, which he describes as inefficient.

But he said that the plan being discussed for Arkansas does have a significant downside - as envisioned it would provide better coverage for people who aren't working and qualify for traditional Medicaid, while others with full-time jobs and two parent households likely would get private plans with high deductibles.

That he says would be inequitable.

Arkansas Gov. Mike Beebe, a Democrat, said the use of private insurance, rather than Medicaid, is critical to getting the measure through the Republican Arkansas legislature. To enact the expanded coverage, 75 percent of the state's two legislative chambers must approve.

"I am always cautious in my optimism, but I feel good about Arkansas's options coming out of this meeting," the governor said after discussing the idea of providing coverage through private insurers with Health and Human Services Secretary Kathleen Sebelius.

Beebe aides said the Medicaid expansion, envisioned by the Affordable Care Act, could not have passed.

Estimates vary on how many people would benefit from the Medicaid expansion in Louisiana. Some reports have estimated about 400,000 have incomes at 138 percent of the federal poverty level - or $26,952 for a family of three - which would make them eligible for coverage.

The Medicaid expansion would be fully covered by the federal government for the first three years, starting in 2014. After that, the federal portion would be gradually ratcheted down to 90 percent. The Jindal administration has cited studies that say expanding the program would cost more than $1 billion over a decade. But the liberal Louisiana Budget Project concluded in its own report that the state would break even on the expansion because of state spending on the uninsured would fall.

In what could be the most visible sign of the factious debate over the Crescent City Connection tolls, the lamps that outline and illuminate the iconic span may be turned off Friday night, partially cloaking the bridge in darkness. The notion that one of the state's most prominent symbols could fade to black as thousands of entrepreneurs, businesspeople and...

In what could be the most visible sign of the factious debate over the Crescent City Connection tolls, the lamps that outline and illuminate the iconic span may be turned off Friday night, partially cloaking the bridge in darkness. The notion that one of the state's most prominent symbols could fade to black as thousands of entrepreneurs, businesspeople and investors flood the city for New Orleans Entrepreneur Week could be a major setback to a community still basking in the glow of Super Bowl 2013, some say.

The Crescent City Connection's decorative lights could go out Friday night after toll collection was suspended on the bridge last week. But the Young Leadership Council is mounting an effort to try to keep the lights on temporarily. David Grunfeld NOLA.com|The Times-Picayune  

"We think those lights are more than just decorative. It's a symbol of the success of New Orleans,'' said Richard Pavlick, president of the Young Leadership Council. "It's become an iconic structure in that it says we're a strong city, we're a vibrant city and we're open for business.''

The council, which raised nearly $500,000 to erect the lights on the bridge in 1989, is now leading a "Save the Lights'' campaign and lobbying non profits and businesses to temporarily stave off the disconnection.

"This isn't the permanent solution,'' Pavlick said, adding the group wants to bring parties together to find a long-term solution.

The $22 million in tolls paid annually by east bank bound motorists financed bridge operations, maintenance, lighting, landscaping and capital projects. That ended March 5 when a judge threw out last fall's referendum that continued the tolls, ruling that legally registered voters had been denied the chance to vote on the issue when they were given provisional ballots. As such, it was impossible to determine the election's outcome, which passed by 36 votes out of more than 308,000.

On May 4, residents will vote again on the issue.

As the nation's fifth busiest bridge, supporters say it's a critical economic artery that needs more care than the strapped state budget can provide. With a $12 billion backlog of state infrastructure needs, toll backers argue the CCC would have tough fight to land financing for its projects.

But opponents argue bridge users, particularly West Bank residents, have paid enough, now that the bridge is debt free. They also cite the millions of dollars that motorists regionwide pay in gasoline taxes and license and registration fees that should be used to sustain bridge operations.

Proponents point to reduced lighting as one of many cutbacks in services people will notice in the coming months with the suspension of tolls. And since state law prohibits the use of transportation trust money for lighting, the entire 13-mile CCC corridor would have gone dark if the Regional Planning Commission had not voted this week to use a $5 million transition fund to pay for limited lighting, grass cutting and other services for the next 15 months if the toll extension is shot down May 4.

State officials have said the Algiers-Canal Street and Gretna-Canal Street ferries will end service July 1 after using up their final toll funding. Legislation passed last year banned the future use of toll money for the ferries, but created a special fund to pay for the Algiers-Canal Street line had the toll passed. The cost of the Algiers-Chalmette line will be picked up by the transportation department.

Assistant Transportation Secretary Rhett Desselle said lighting costs run about $60,000 annually, including $15,000 for the energy bill.

Pavlick said the responsibility for lighting belongs to the state in a promise it made to the council when it took on the project. But a transportation department spokeswoman said that agreement with the former Mississippi River Bridge Authority is no longer valid, since that board was abolished last year through legislation and the RPC designated adviser on CCC matters.

To have the bridge dark when people are looking to invest in the city sends the wrong message, Pavlick said. "It's more than about keeping the lights on,'' he warned, stressing that the council is taking no stance on the toll issue.

Thomas Jahncke, president of Crescent Energy Services in Belle Chasse, offered to pay the bridge's decorative lighting bill for a month. He said the amount is small compared to the impact of darkening a large part of the cityscape. He challenged oil field service companies, particularly on Engineers Road in Belle Chasse where his company is located, to step up and each cover a month of utilities.

Jahncke said the bridge lights are as symbolic of New Orleans as an illuminated Jackson Square and St. Louis Cathedral. "It's such a big statement on who we are and what the thing is all about,'' he said.

He said he remember the sense of civic pride during the YLC's campaign to put lights on the bridge. The company he worked for at the time held a golf tournament to raise money for the project.

"It was just a great idea, one that you could really wrap your arms around,'' Jahncke said. "We all chipped in.''

YLC turned on the switch, illuminating the 252 lights, on July 3, 1989, to much fanfare. Chris Johnsen and Pres Kabacoff were credited with leading the effort.

Al Leone, a former candidate for Jefferson Parish president, told the Jefferson Parish Council Wednesday he would lobby Entergy or another corporate partner to subsidize the lighting expense, and honor that contribution with a Spirit Award from the Old Capitol Foundation Board on which he sits.